N.J. bill to boost microbreweries signed into law by Gov. Chris Christie

Robert Sciarrino/The Star-Ledger The Star-LedgerEmpty beer bottles travel to a filing machine at the Flying Fish Brewing Co., located near Exit 4 off of the New Jersey Turnpike in Cherry Hill. The company brews specialty beers, some of which are named after New Jersey Turnpike exits

Brewpubs and microbreweries have a reason to raise their glasses today.

Bipartisan legislation sponsored by Senator Donald Norcross, of Camden, to modernize the state's craft beer industry laws and help grow jobs was signed by Governor Chris Christie.

“For too long our craft brewers have been forced to operate under an antiquated system that hampered their ability to compete with businesses in the region,” said Sen. Norcross. “With this law, we will create a more friendly business environment for New Jersey’s craft brewing industry, giving it the opportunity to expand and thrive. Growing the industry will create new local jobs, increase tourism and help contribute to an overall healthier state economy.”

New Jersey’s craft brewing industry has grown considerably in the last 20 years, but state laws had not been revised to accommodate the business demand, legislators said.

The law (S-641/A-1277) modifies areas of state statute that govern the
state’s small breweries. It affects microbreweries (limited license
breweries) which produce small batches of beer for sale to retailers and
distributors in and out of the state. It also affects brewpubs
(restricted license breweries) which brew small batches of beer for sale
at adjoining restaurants.

Quite unlike the mega-brewery names on most tap handles throughout
the state, craft breweries are defined by their size, brewing no more
than 6 million barrels a year. They’re also known for being independent
and unique.

Flying Fish in Cherry Hill is one of them. Owner Gene
Muller describes the company as "the largest little guy in the state,"
at 14,000 barrels a year. By comparison, Budweiser brews more than 100
million barrels a year, producing 12 to 13 million at its Newark site
alone.

But the craft brewer’s competition isn’t those big-named
breweries. It’s the other craftbrewers throughout the region. Just
across state lines, Flying Fish is going pint to pint with breweries
such as Yards in Philadelphia and Dogfish Head in Delaware.

When out of state visitors hop off the New Jersey Turnpike and make a
detour to visit the brewery in Cherry Hill, Muller said they can only
let them leave with two growlers, or the equivalent of two six packs.
They’d rather have a case or two to go, Muller said.

. “We’re trying to compete with these other states, and its
basically like having one hand tied behind our backs.

The law:

Permits brew pubs, to increase their annual production to 10,000 barrels a year, up from 3,000.

Allows brew pubs to distribute their product to liquor stores and restaurants through the wholesale distribution system. Previously, brewpubs could only sell their product in the restaurant immediately adjoining the brewery.

Increases the current cap on the number of brewpubs a company may open in New Jersey, by raising the limit on plenary retail consumption licenses for brewpubs from two to 10.

Permits brewpubs to offer samples of their product on site as well as off site with a permit from the Alcohol Beverage Control director, at places such as fairs or charity events.

Permits microbreweries to sell beer brewed at the licensed location for consumption on premises as part of a brewery tour. Also allows microbreweries to sell a limited amount of beer for off-site consumption.

Allows microbreweries to offer samples of their product both on and off the premises, as currently permitted by the state’s wineries.